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Maloy Introduces Bipartisan, Bicameral ‘HYDRO Act’ to Reduce Electricity Costs During Drought

Washington, D.C. —  Today, Representative Celeste Maloy (R-UT) was joined by Senators Mark Kelly (D-AZ) and Kyrsten Sinema (I-AZ) in introducing the bipartisan, bicameral Hydropower Delivery Rate-reduction Offset (HYDRO) Act to reduce rates when certain Buruea of Reclamation hydropower facilities aren’t producing the contracted amount of electricity due to drought and low reservoir levels.

 

As the West confronts its worst drought in centuries, reservoir levels at Lake Powell and Lake Mead have reached record lows. As a result, hydroelectric power generation in the Colorado River Basin has been reduced by roughly one-third, raising electricity costs as customers are obligated to replace unavailable generation from the volatile and limited wholesale market.  The HYDRO Act would direct the Western Area Power Administration (WAPA) to reduce contracted rates for those hydropower facilities to help stabilize utility costs.

 

“I am very excited to lead the HYDRO Act in the House. It will be a great benefit to all hydropower customers in the West who have been experiencing low electricity generation due to the severe and ongoing drought.  I know this bipartisan legislation will be a great help in easing the burden for Utah and the other Colorado River Basin states whose electricity is generated by these facilities throughout the region,” said Rep. Maloy.

 

“As Arizona and the West continue to deal with the effects of this historic drought, we must address challenges brought by water shortages head on. While drought reduces hydropower generation, common-sense policies like the HYDRO Act will give us the tools we need to help ensure Arizonans don’t pay more for the electricity they need,” said Sen. Kelly.  

 

“As record drought conditions impact our state’s ability to produce electricity through hydropower, we're working to ensure hardworking Arizonans don't have to foot the bill for higher energy costs," said Sen. Sinema.

 

The HYDRO Act will:

  • Require the Western Area Power Administration (WAPA) to reduce rates for federal hydropower customers during times of lower electricity generation due to the ongoing drought in the West.
  • Provide flexibility to WAPA in how they choose to reduce customer rates with a variety of tools at their disposal.

The HYDRO Act will NOT:

  • Limit the ability of the Secretary of the Interior or Colorado River Basin states to address drought operations.

Bill text can be found HERE

 

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